Axon Enterprise, Inc. (AXON)

The device is sold or given away almost free, while the money comes from subscription: video storage, software for tagging and preparing evidence, and records management. Cancelling the subscription means losing the archive, so retention is exceptionally high.

Buyers are government agencies whose budgets track the economic cycle weakly but depend on political decisions. Expansion goes beyond police: private security, utilities, the military. Risks: public debate about use of force and competition for contracts. The model is a subscription bundling hardware, cartridges and cloud storage, so a signed contract produces revenue for years rather than once. The company pays no dividend.